Arizona Estate Planning

Estate Planning for Generation X

CBS Boston: “For many people Generation X is frozen in our minds as this 25-year-old but they are no longer kids. Many of them have kids of their own. And most have not done any estate planning.

Wrongfully thinking that they don’t need to because they haven’t accumulated many assets or consider themselves too young to be thinking about dying.

Estate planning is a key element in any financial plan no matter what your age. Estate planning allows you to decide how your assets should be distributed upon your death. Thinking that dying only happens to old people is a stumbling block when trying to get younger folks to think about estate planning.”

On the Net2012-05-08T10:31:46-07:00May 8th, 2012|Estate Planning|

An Estate Plan Is More Than Just A Will

The Journal: “Far too many people think, “I don't have an estate. I don't need to do any estate planning.”

But there are more aspects to estate planning than just signing a will. Medical, current financial and other decisions also play an important role.

The differences between the similar sounding living will and living trust often causes confusion. The first is for medical purposes; the other is financial.

A living will provides authority for certain last medical measures when in a terminal condition and has nothing to do with transferring assets or property after death.”

On the Net2012-05-08T10:29:37-07:00May 8th, 2012|Estate Planning, Healthcare Directives, Powers of Attorney, Trusts, Wills|

Major Estate Planning Mistakes You Don’t Want To Make

Forbes: “It never fails to amaze me that so many otherwise savvy individuals, many of whom have their financial lives otherwise buttoned-up, use poor judgment (or no judgment) when it comes to their estate planning. The list of major estate omissions and poor choices is almost infinite. Here are some of the mistakes that are frequently made.

1. Not having a plan

In a sense, everyone does have an estate plan; state law makes this point a certainty. It simply may not be the plan that you had in mind, or that your family would have preferred.”

On the Net2016-12-13T20:33:31-08:00April 25th, 2012|Common Problems, Estate Planning|

Estate Tax Portability May Be In Jeopardy

Examiner.com: “If you are currently married with significant assets, you and your spouse have a very limited time to save a lot of money, because after that it’s very likely that Congress will change the rules now in existence and make dying much tougher on your loved ones in terms of federal estate taxes. That is, of course, unless you take this moment – right now — to do some very creative planning that will lock in what’s called spousal portability.

What is Spousal Portability?

Portability is the ability to pass one’s unused estate tax exemption to his or her spouse upon death. It works like this:

The current estate tax exemption (at least until 2013) is $5 million. That means that if you die with less than $5 million, you pay no estate taxes. Five million is a pretty high number, so this exemption is very favorable. It gets even better. Since each spouse in a marriage has a $5 million exemption, the total exemption available to the couple is $10 million. If one spouse dies and has an estate valued at only $3 million, the unused exemption ($5 million – $3 million = $2 million) “ports” to the surviving spouse. He or she can now leave an estate of up to $7 million without incurring any estate taxes.”

On the Net2016-12-13T20:33:31-08:00April 18th, 2012|Estate Planning, Estate Tax|

What You Need To Know About Being A Personal Representative (Executor)

JD Supra: “Being asked to act as an executor for a friend or family member’s estate can be flattering. But it can also mean a lot of work, and potential legal liabilities if you don’t do the job right.

For your reference, five things you should know – before you say “yes” – about the role of executor:

1. What does an executor do, exactly?

“The tasks that an Executor must accomplish to handle the estate administration process include finding and controlling all of the assets of the decedent, paying any debts, taxes and claims against the decedent’s estate, and distributing the balance of the estate to the appropriate persons.” (The Executor – An Estate’s Representative by Dinsmore & Shohl LLP)”

On the Net2016-12-13T20:33:31-08:00April 18th, 2012|Estate Planning, Wills|

Should Couples Plan Together or Separately?

Forbes: “How married couples and domestic partners structure their estate plans can make the difference between whether a family stays connected or gets blown apart after the first spouse or partner passes away. Things can be even more complicated and volatile in blended families – when there are step and half siblings and stepparents in the mix.

The first issue for all couples to resolve is whether to be represented jointly by the same estate planner or for each of you to have your own lawyer. Joint representation can be more cost-effective, since you only have to pay one set of estate planners, and more efficient–working together enables you to divvy up tasks as you prepare to meet with your estate planners. Another advantage is that it builds greater trust and more open communication between the two of you, and possibly with all of the children in your lives.”

On the Net2012-04-11T08:28:14-07:00April 11th, 2012|Estate Planning, FAQ|

16 Estate Planning Tasks To Complete Before You Die

Investopedia: “While many of us like to think that we're immortal, the old joke is that only two things in life are for sure: death and taxes. Not only is it important that you have a plan in place in the unlikely event of your death, but you must also implement your plan and make sure others know about it and understand your wishes – as Benjamin Franklin's famous quote goes, “by failing to prepare, you are preparing to fail”. If you've procrastinated on your estate planning, this article will help you get going in the right direction.

Must Do No.1: Physical Items Inventory

To start things out, go through the inside and outside of your home and make a list of all items worth $100 or more. Examples include the home itself, television sets, jewelry, collectibles, vehicles, guns, computers/laptops, lawn mower, power tools and so on.”

On the Net2016-12-13T20:33:31-08:00April 11th, 2012|Estate Planning|

Avoiding Common Issues With Trusts

RGJ.com: “George Bernard Shaw said “Marriage is an alliance entered into by a man who can’t sleep with the window shut and a woman who can’t sleep with the window open.” Like marriage, estate planning takes work — optimism, contingency planning and adjusting.

I want to share some of the pitfalls I’ve experienced so that you avoid a head-on collision on your life journeys. They’re talking points with your family, business partners, tax experts, lawyers and financial advisors. And please think about estate planning as planning to live (not death) and preparing your heirs for your estate (not vice versa).

My No. 2 kid is trustee … I don’t get along with the others. The trustee holds an important position, wearing many hats and has a fiduciary standard of care. Duties include accounting, compliance, loyalty to beneficiaries, impartiality and prudence. Trustees may be able to hire professionals to help. However, the buck ultimately stops with the trustee. Name the “right” trustees to make those King Solomon decisions and see your well-intentioned plans become reality.”

On the Net2017-10-07T11:14:46-07:00April 9th, 2012|Common Problems, Estate Planning, Trusts|

Estate Planning For Pets Is An Option For Everybody

Yuma Sun: “When people think of someone setting up a trust for their pet, they might imagine Leona Helmsley's pet Maltese named Trouble drinking Perrier from a crystal bowl in a lavish Manhattan penthouse. While Helmsley left $12 million to her pet dog, this was not her only bizarre moment. The “Queen of Mean” was known to have many eccentricities.

However, you don't have to be rich and eccentric to set up a pet trust. Pet trusts are most commonly set up by caring individuals who just want to make sure that their non-human family member is taken care of in the event of their own death or disability.”

KEYTLaw can help you plan for your pet with a custom drafted Pet Trust for $297.

On the Net2017-10-07T11:14:46-07:00April 9th, 2012|Estate Planning, Planning for Pets|

Estate Planning After a Diagnosis of Dementia

AZCentral: “A lot of people tend to put off big financial and estate-planning decisions — roughly half of Americans don't have a will, for example.

But when a diagnosis for dementia enters the picture, it tends to add urgency.

Alzheimer's and other age-related diseases that affect mental health not only complicate daily life but can strain family relationships and drain your finances. It's wise to research options as early as possible and to put plans in place while you're still capable.”

On the Net2012-04-09T09:14:58-07:00April 9th, 2012|Estate Planning|

The Story of Disinherited Heirs

Vitals on MSNBC: “Some do it with malice. Others, through a misguided notion that money or family heirlooms don't really matter to the person. Whatever the reason, the plight of the disinherited — or those who may be cut out of the family wealth in the future –has been highlighted by a bitter legal battle between Australia’s “richest mom,” Gina Rinehart, and her three children.

The billionaire says it would be in the “best interests of the beneficiaries to force them to go to work” rather than let them inherit her mining empire.

Then there's Mary Beth Caschetta, whose father cut her out of his will in dramatic movie star style.

“There was a line in my father's will similar to what Joan Crawford used when she disinherited her daughter,” says the 45-year-old medical writer and author from Massachusetts. “‘I leave no bequest to my daughter for reasons known to her.'”

On the Net2016-12-13T20:33:31-08:00April 4th, 2012|Beneficiaries, Estate Fights, Estate Planning, Rich & Famous|

Everyone Can Benefit From A Trust – Regardless Of Their Net Worth

SeacoastOnline.com: When I talk with couples about estate planning, a frequent question is whether they have enough assets to warrant the use of trusts.

Trusts have long been considered a tax-saving tool for the wealthy. Now that Congress has increased the federal estate tax exemption to $5 million and made that exemption portable for spouses, including trusts in an estate plan may seem to be overkill. Benefits other than estate tax reduction, however, often tip the scales in favor of trusts, even for couples with smaller estates.

A trust is an alternative to individual or joint ownership as a means for owning property. The person establishing the trust, known as the grantor, transfers assets to a trustee, who is charged with managing the property for a beneficiary according to the terms of the trust document. When a revocable living trust is part of an estate plan, the grantor, trustee and beneficiary are often the same person. Because the trust will also specify a successor trustee, the grantor is assured the assets will continue to be managed for his benefit should he become unable to manage his financial affairs on his own.

Continue reading how everyone can benefit from a trust – regardless of their net worth.

On the Net2016-12-13T20:33:31-08:00March 28th, 2012|Estate Planning, Trusts|

What You Need To Know About A Last Will & Testament

Washington Times: Unless you know something we do not, you will eventually pass away, and you should plan for it by writing your Last Will & Testament.

A will protects your family after your death and is one of the most vital documents you need. You may not care what happens to your money or assets after you die, and you may not care how all of it is distributed. You may not have money or assets, or you may plan on spending all of it before you die.

Getting past these tangible things, there is another personal, primary focus of a Last Will & Testament. What do you want to happen to you if you go into a coma? Do you want doctors to employ life-saving procedures? Most wills include a document called a Medical Directive to guide those decisions. Do you remember hearing about Terry Schiavo many years ago? She was in a coma and did not have a will, because she was quite young. Who needs a will in their 20s?

Continue reading about what you need to know about a last will and testament.

On the Net2016-12-13T20:33:31-08:00March 26th, 2012|Estate Planning, Wills|

Whitney Houston’s Estate Plan Was Not Ideal

Probate Lawyer Blog: Whitney Houston’s will was recently revealed, after it was filed with the probate court to open her estate, in Atlanta, Georgia. As expected, it named Bobbi Kristina as Whitney’s sole beneficiary. Beyond that, it was surprising for several reasons.

First, the fact that Whitney relied on a will — signed back in 1993 no less — instead of a living trust is troubling. We’re talking about the woman who signed the largest recording contract in history! If anyone should have thorough estate planning, including a living trust, it was Whitney.

Why? Wills have to pass through probate court to be effective, which makes them public record. That’s why information about the contents of her will is all over the internet. Inside Edition, for example, posted a copy of the will, here. In addition to be public, probate can be expensive, time-consuming, and a breeding ground for family fights.

Continue reading Whitney Houston's estate plan was not ideal.

On the Net2016-12-13T20:33:32-08:00March 23rd, 2012|Estate Planning, Rich & Famous, Trusts, Wills|

Women’s Need for an Estate Plan May Outweigh Men’s

BellaOnline: Do I Need an Estate Plan? In a word, YES!

No matter where you fall on the “wealth,” spectrum (and for this article, we’ll define “wealth” in economic terms, rather than emotional or spiritual), it’s important to make estate planning a top priority. And, just as with all things “Mars/Venus,” a woman’s estate planning needs are much different than a man’s – all the more reason to take charge of your own financial future.

Here are some things to think about:

1. Women Often Outlive Men

According to the 2011 National Vital Statistics Report, on average, women live 4.9 years longer than men. This means your money needs to last longer than a man’s. If you are married, it is likely you will outlive your husband. Therefore, you will have the final say in how your joint assets are distributed to your heirs, and educating yourself about estate planning is key.

Richard Keyt2017-10-08T09:20:00-07:00March 20th, 2012|Estate Planning|

Estate Planning Lessons to be Learned from “The Descendants”

Forbes: Estate planning doesn’t often make it to the Academy Awards. But that’s happened this year, with The Descendants nominated for Oscars in five categories, including best picture, best actor (George Clooney) and best director (Alexander Payne).

Based on the novel by Kaui Hart Hemmings (see related story here), it’s a multi-layered story about Matt King (played by Clooney), a rich trial lawyer in the throes of a midlife crisis and personal tragedy. His wife Elizabeth has been injured in a boat race accident and lies in a coma, leaving him to care for his two daughters—the precocious 10-year-old Scottie (Amara Miller) and rebellious 17 year-old Alexandra (Shailene Woodley). Meanwhile, he discovers that his wife has been having an affair and planning to divorce him.

While these plots and sub-plots dominate our attention, the movie title refers to the fact that King is the descendant of a wealthy white banker and a Hawaiian princess. They left valuable real estate on Kauai in a trust. With that trust about to end, King must decide whether to sell the land to a developer, enriching himself and his greedy cousins.

To most viewers, estate planning themes are secondary to the film’s other dramas. But it turns out that the legal issues were painstakingly developed and fact-checked. On location in Hawaii in March, 2010 to get the lay of the land and soak up its culture, Alexander Payne, the director, consulted Randall Roth, a professor at the University of Hawaii School of Law and a nationally known trusts and estates expert.

Continue reading about estate planning lessons to be learned from The Descendants.

On the Net2016-12-13T20:33:35-08:00March 7th, 2012|Estate Planning, Rich & Famous|

Estate Planning Basics for Unmarried Couples

Investopedia: The estate-planning process should be an integral part of everyone's financial plan. The benefits are obvious, including tax savings, efficient disposition of assets, end-of-life decisions, financial security for heirs and general peace of mind.

For married couples, the planning rules are fairly straightforward. For unmarried couples, however, whether same-sex or opposite-sex, the issues concerning financial and estate planning are often quite complex, and the rules cumbersome. This article will highlight some key planning strategies that unmarried couples should consider in order to protect both partners. (To keep reading on this subject, see Marriage, Divorce And The Dotted Line, The Tax Benefits Of Having A Spouse and Relationship Money Matters.)

Background Statistics On Unmarried Couples

According to the 2000 U.S. Census Bureau, it is estimated that there are more than 5.5 million unmarried couples living together in the U.S., up from 3.2 million in 1990. Of the 5.5 million, it is estimated that 600,000 are same-sex couples, who for the most part can't get hitched even if they wanted to.

For the increasing number of couples unable to or unwilling to get married, financial planning is crucial to avoid unpleasant surprises. After all, when it comes to taxes and other financial benefits, we live in a society that provides benefits to those who wed and punishes those who don't. Until the system changes, here are a few tips you can use to protect not only yourself but your loved one as well in these four areas of your personal finance:

1. Account And Property Titling

The legal ownership of property or accounts can affect how they are distributed in the event of the owner's death. Each type […]

On the Net2016-12-13T20:33:35-08:00February 23rd, 2012|Estate Planning|

Estate Planning Lessons To Be Learned From Whitney Houston’s Death

Findlaw: Whitney Houston's unexpected death at age 48 is tragic, but it also offers lessons in estate planning: It's never too early (or too late) to create a will, and it's also a good idea to create a separate document to spell out funeral and burial plans.

Whitney Houston's funeral is set for Saturday in New Jersey, at the church where the singer first took to the stage, Reuters reports. But there was a family dispute about Houston's burial plans: Some wanted her buried in New Jersey, others in Atlanta, according to the website TMZ.

Such disagreements may have been avoidable, had Whitney Houston left her final wishes in writing — and not just in a will.

Indeed, Whitney Houston did leave a will, which likely names her only child Bobbi Kristina Brown, 18, as her main beneficiary, ABC News reports. But the probate process can take months, and a person's will may not be accessible during that time.

Read more about estate planning lessons to be learned from Whitney Houston's death.

On the Net2016-12-13T20:33:35-08:00February 17th, 2012|Estate Planning, Rich & Famous|